Skip to content Skip to Search
Skip navigation

Aramco invests $500m in LNG business MidOcean

Aramco MidOcean MidOcean Energy
The Aramco-MidOcean deal allows the Saudi oil major to tap into the booming demand for LNG
  • MidOcean is a unit of US investor EIG
  • Aramco can increase its stake
  • LNG demand to grow by 25%

Saudi Arabia’s Aramco has made its first investment in the international liquefied natural gas (LNG) market with a $500 million investment in MidOcean Energy.

The Saudi oil supermajor has acquired a minority stake in the company, which is the LNG unit of US-based energy investor EIG.

The deal includes an option to increase the size of its shareholding.

“We anticipate strong demand-led growth for LNG as the world continues on its energy transition, with gas being a vital fuel and feedstock in various industries,” Amin H. Nasser, Aramco CEO, said.

The outlook for LNG is bullish, according to Wood Mackenzie, with another 100 million metric tonnes per annum of capacity required to meet demand growth by the mid-2030s. This is a 25 percent increase on current supply and on top of what’s already sanctioned.

The agreement builds on the relationship between Aramco and EIG, which was part of a consortium that acquired a 49 percent stake in Aramco Oil Pipelines Company, a subsidiary of the Saudi oil major, in 2021.

Completion of the Aramco-MidOcean deal is subject to closing conditions, which include regulatory approvals.

Global LNG trade grew by almost 7 percent last year, reaching a new record of 401.5 million tonnes, according to a report from the International Gas Union.

European buyers have covered the void left by cuts to Russian pipe gas.

MidOcean is also in the process of acquiring interests in four Australian LNG projects, with a growth strategy to create a diversified global business for the liquid fuel, the companies said.

Latest articles

The WakeCap system being used on a construction site

Aramco adopts heat-sensing construction helmets

Saudi Aramco is deploying advanced safety helmets equipped with heat stress sensors to protect workers on some of its construction sites, a critical concern in the Gulf region’s scorching climate. The helmets, developed by Dubai and Saudi Arabia-based construction tech startup WakeCap, utilise internet-of-things (IoT) technology that monitors worker attendance, location, and safety incidents in […]

Wind turbines above the village of Kotronas in the Peloponnese region. Greece's Terna Energy invests in wind, solar, hydroelectric and pumped storage projects

Masdar buys Greece’s biggest investor in renewables

The UAE’s state-owned clean energy company Masdar is to acquire a majority share in Terna Energy of Greece. The initial deal – one of the largest in the European renewables market and the biggest ever energy transaction on the Athens Stock Exchange – is for a 67 percent stake. The price of €20 ($21.45) per […]

KBR Iraq

US firm wins $46m contract to boost Iraq infrastructure 

US engineering giant KBR has won a five-year $46 million contract to support Iraq’s infrastructure development and future energy projects, including mega-projects. The company is expanding its presence in Iraq, establishing a new office in Baghdad and said it is also considering the creation of a design centre to enhance local engineering skills. Under the […]

The UAE attracted FDI inflows of $30.7 billion last year, a 35 percent year-on-year growth

UAE ranks second in global greenfield FDI projects

A 33 percent year-on-year surge in greenfield FDI projects in the UAE catapulted the Emirates up two places to the second spot after the US in 2023. There are now 1,323 greenfield FDI project announcements, state-run Wam news agency reported, citing the World Investment Report 2024. The UAE attracted FDI inflows of $30.7 billion last […]